CINF (Cincinnati Financial) Beneish M-Score: -2.47 (As of Jun. 24, 2026)


CINF Cincinnati Financial Corp CINF
71 GF Score
Price $178.43
GF Value $164.42
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Cincinnati Financial Beneish M-Score?

Cincinnati Financial CINF +1.49% 71 Beneish M-Score is -2.47 as of Jun. 24, 2026. GuruFocus rates CINF with a GF Score™ of 71/100 and a GF Value™ of $164.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 399 Insurance companies, Cincinnati Financial ranks worse than 53.38% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Cincinnati Financial's Beneish M-Score or its related term are showing as below:

CINF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.63   Med: -2.48   Max: -2.11
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Cincinnati Financial was -2.11. The lowest was -2.63. And the median was -2.48.

CINF
71GF Score
Cincinnati Financial Corp CINF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cincinnati Financial Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Cincinnati Financial for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9781+0.528 * 1+0.404 * 1.0005+0.892 * 1.1141+0.115 * 0.8705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.018048-0.327 * 0.9017
=-2.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $4,178 Mil.
Revenue was $12,631 Mil.
Gross Profit was $12,631 Mil.
Total Current Assets was $0 Mil.
Total Assets was $41,002 Mil.
Property, Plant and Equipment(Net PPE) was $219 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $861 Mil.
Net Income was $2,393 Mil.
Gross Profit was $21 Mil.
Cash Flow from Operations was $3,112 Mil.
 Total Receivables was $3,834 Mil.
Revenue was $11,337 Mil.
Gross Profit was $11,337 Mil.
Total Current Assets was $0 Mil.
Total Assets was $36,501 Mil.
Property, Plant and Equipment(Net PPE) was $214 Mil.
Depreciation, Depletion and Amortization(DDA) was $130 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $850 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(4178 / 12631) / (3834 / 11337)
=0.330773 / 0.338185
=0.9781

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(11337 / 11337) / (12631 / 12631)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 219) / 41002) / (1 - (0 + 214) / 36501)
=0.994659 / 0.994137
=1.0005

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=12631 / 11337
=1.1141

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(130 / (130 + 214)) / (168 / (168 + 219))
=0.377907 / 0.434109
=0.8705

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 12631) / (0 / 11337)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((861 + 0) / 41002) / ((850 + 0) / 36501)
=0.020999 / 0.023287
=0.9017

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2393 - 21 - 3112) / 41002
=-0.018048

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cincinnati Financial has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.47 mean?
Cincinnati Financial (CINF) has a Beneish M-Score of -2.47 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Cincinnati Financial and its competitors. According to the industry distribution chart, Cincinnati Financial ranks #213 out of 399 companies in the Insurance industry, placing it in the top 53.4%.
Is Cincinnati Financial's Beneish M-Score too high?
Cincinnati Financial's current Beneish M-Score is -2.47. Based on the distribution chart, Cincinnati Financial ranks #213 out of 399 companies in the Insurance industry, which is below the industry midpoint. Overall, Cincinnati Financial has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cincinnati Financial's Beneish M-Score compare to WRB and MKL?
According to the Insurance industry distribution chart, Cincinnati Financial ranks #213 out of 399 companies for Beneish M-Score. This places Cincinnati Financial in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Cincinnati Financial and its competitors. Cincinnati Financial's current Beneish M-Score is -2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cincinnati Financial stock overvalued right now?
Based on GuruFocus' analysis, Cincinnati Financial (CINF) is currently considered Fairly Valued. The stock's GF Value™ is $164.42, compared to a current price of $178.43 — trading 8.5% above its estimated fair value. The current Beneish M-Score is -2.47. Cincinnati Financial's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Cincinnati Financial (CINF), the current Beneish M-Score is -2.47 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cincinnati Financial (CINF) Overvalued in 2026?

Based on GuruFocus' analysis, Cincinnati Financial stock appears to be overvalued. The current stock price of $178.43 is trading 8.5% above its estimated GF Value™ of $164.42. GuruFocus considers Cincinnati Financial to be Fairly Valued.

Key valuation signals for CINF:

  • Beneish M-Score: -2.47
  • GF Value™: $164.42 vs. price of $178.43 (8.5% above fair value)
  • GF Score™: 71/100 with 5 warning signs

No single metric tells the full story. See the CINF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cincinnati Financial Business Description

Other Exchanges 0HYE:UKCCJ:Germany
Address 6200 S. Gilmore Road, Fairfield, OH, USA, 45014-5141
Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The company operates in segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance, and Investments. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.
71GF Score

Get the complete analysis for CINF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$178.43
Price
$164.42
GF Value